I love battles when you can't really feel sorry for either side.
As much as I or anyone hate patent trolls, one can't sit here and complain that a percentage of the value isn't a fair price to pay if one thinks it's okay for Apple to charge Music + App devs 30% to improve their OS + provide content for it's users.
and Apple agreed to pay Qualcomm's FRAND rates, didn't it? Like Apple's 30% cut known to the public, Qualcomm's FRAND licensing rates are published time to time and Apple agreed to abide by it.
Apple pays according to the article about $10 per device, or 1.33% of the retail price. This is far below what Qualcomm is charging, 3% to 5%, and what most handset makers pay. Further the royalty Apple pays (indirectly) is based on Apple's manufacturer's build cost, not retail cost.
App developers are free to find customers elsewhere. Perhaps app developers could create their own distribution system that guarantees security, updates and ease of use and create a device upon which it can run.
App developers can also handle the multiple country's tax laws, create a payment system and do all of that on their own as well. Apple devs don't have to deal with collecting taxes in the countries in which they sell. They don't have to deal with fraudulent transactions, chargebacks or distributing updates to users.
The idea that the 30% is somehow unfair is ridiculous. Look at retail markup rates for products sold in conventional stores. That's what that 30% is -- a retail markup and it's completely fair. Whole Foods sells olive oil for $20 that they buy from a supplier for $8. How unfair does 30% seem now? The supplier prices their product at the price they need to collect. What the end-distributer charges really isn't a concern to the supplier. But unlike Whole Foods, Apple doesn't give preference to certain suppliers over others. Everyone on the App Store has an equal chance to sell their product.
People forget that 30% was lower than most comparable outlets prior to Apple's App Store. Competitors immediately slashed their own rates to 30% to match.
As much as I or anyone hate patent trolls, one can't sit here and complain that a percentage of the value isn't a fair price to pay if one thinks it's okay for Apple to charge Music + App devs 30% to improve their OS + provide content for it's users.